A Government meeting was held today under the chairmanship of Georgian Prime Minister Irakli Garibashvili.

The issues discussed by the Members of the Cabinet included an amendment to the Law of Georgia on Medicines and Pharmaceutical Activities and draft laws pertaining to it. In particular, reference prices will be introduced in 2023, with the state defining a maximal limit and any charges above it prohibited, a widely used practice around the world. This reform seeks to increase access to quality medicines and ensure fair prices and a competitive and transparent pharmaceutical market. According to preliminary estimates, reference prices will reduce medication prices by an average of 40%.

At the initial stage, reference prices will apply to medications for chronic diseases. Gradually, however, the price regulating mechanism will expand to cover other groups of medicines as well.

Notably, on the initiative of the Government, the Turkish pharmaceutical market opened up in March 2022, resulting in a 60-80% reduction of medication prices in Georgia. Consequently, almost 100,000 Georgian citizens will save up to 200 million GEL. As for the introduction of reference pricing, it will further improve access to medications.

Another issue discussed at the meeting involves amending the February 21, 2013 Ordinance #36 on Particular Measures to Switch to Universal Healthcare. In particular, a program for post-stroke rehabilitation and rehabilitation following head and spinal cord injuries will be added to the universal program. This will enable patients to restore their functional skills in a timely manner and avoid the development of difficult restrictions. The program incorporates a full rehabilitation cycle. The monthly budget of rehabilitation following a stroke and head and spinal cord injuries is 919,250 GEL. The program’s annual budget is 11 million GEL.

Notably, the budget of the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs will increase by about 770 million GEL in 2023, enabling the ministry to increase financing for universal healthcare and other targeted programs.